How To YieldBoost GPI From 1.1% To 17.3% Using Options
December 08, 2016 at 11:39 AM EST
Shareholders of Group 1 Automotive, Inc. (GPI) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the April 2017 covered call at the $85 strike and collect the premium based on the $4.80 bid, which annualizes to an additional 16.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.3% annualized rate in the scenario where the stock is not called away..